Crédit Agricole has walked away from a potential tie-up with Monte dei Paschi di Siena (MPS), leaving the Italian lender exposed to a bid from Intesa Sanpaolo, according to HuffPost Italia. The French banking group is instead redirecting its attention toward Banco BPM, the report said.
The decision marks a significant shift in Italy’s ongoing banking consolidation saga. HuffPost Italia reports that Crédit Agricole’s move effectively clears the path for Intesa Sanpaolo to pursue MPS without direct competition from the French lender.
Banco BPM has since confirmed that no conditions exist for a deal with MPS, according to Il Sole 24 ORE. The bank’s statement came after weeks of speculation about a possible three-way arrangement involving Crédit Agricole, Banco BPM, and MPS.
MPS responded by saying it takes note of Banco BPM’s position and will now evaluate all available options, Il Sole 24 ORE added. Sky TG24 also reported that Banco BPM has halted dialogue with MPS, citing the same breakdown in talks.
The collapse of the Banco BPM-MPS negotiations has triggered a wave of accusations between the parties, la Repubblica reported. Crédit Agricole is now pressing its case for a separate deal with Banco BPM, according to the same outlet.
Il Post described the situation as a new chapter in Italy’s “banking risk game,” with major lenders repositioning themselves as consolidation efforts continue across the sector.
The key question now is whether Intesa Sanpaolo will formalize its interest in MPS, and whether Crédit Agricole can secure a deal with Banco BPM that satisfies regulators and shareholders alike.
